Women take control of major financial decisions

A new study suggests that increasing numbers of British women are more likely to manage important issues such as choosing a financial provider and making provision for future spending and savings than men.

Whilst traditionally it was women who took control of day to day household spending whilst men made decisions regarding banking and financial planning, this is now changing and having positive results on family finances.

A study by Lloyds TSB has revealed that when women are in charge of long-term financial planning 91% of households put money away for the future, but this figure fell to 83% of households when men were in charge.

The trend in female decision making was more evident in younger couples and the survey showed that men over 45 still tended to take control of major financial decisions.

The study also revealed signs that the ongoing financial crisis has made couples more cautious about their money with 70% budgeting carefully each month. Prior to 2008 only 56% were careful about their spending.

Head of Savings at Lloyds TSB Greg Coughlan welcomed the news that women were taking a more proactive approach to family finances commenting;

“This marks not just a shift in the balance of power in families but may have more positive impacts for the future economy.

Female control of the family purse strings is likely to give rise to an increase in household savings as women tend to be more cautious savers in terms of the vehicles they save in and have a longer-term orientation towards saving.

This in turn means that mortgage repayments and consumer spending could become less vulnerable to turmoil in employment or financial markets in the future.”